Capitated Pricing

What is Capitated Pricing?

 

‘Capitated Pricing’ is a kind of pricing model in which the pricing is based on each customer being served rather than the service provided. For example, HR software generally quotes their price on a per-employee basis rather than providing a cumulative figure based on the company size and complexity.

 

This kind of pricing helps the buyer availing the services choose the vendor easily as it provides a standardized way of comparing one vendor to the other. The pricing would also be customized based on the complexity of the organization, however, it will still set a standardized price on an individual basis.

 

Capitated pricing is generally used to pay healthcare systems. It is used to pay a predetermined amount for each enrolled individual, for a particular period, irrespective of the fact that the person seeks out medical care.

More HR Terms

Self-Funded (Self-Insured) Plan

What is a Self-Funded (Self-Insured) Plan?   ‘Self-Funded Plan’ or ‘Self-Insured Plan’ refers to a kind of medical insurance plan in which the employer pays

Overtime

What is Overtime?   Overtime refers to the hours worked by an employee that exceeds their regular work schedule. Most employees have fixed hours in

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